A new maintenance policy which minimizes the total expected servicing cost for an item with two–dimensional warranty is proposed. An iterative procedure to estimate the item’s failure rate function from historical observations and an optimization algorithm based on Monte Carlo simulation are applied to obtain the best maintenance policy. Numerical examples and sensitivity analysis are presented.

The environmental sustainability and business benefits of end-of-life products have led to worldwide growth in the remanufacturing market. However, customers are often sceptical about quality durability remanufactured products. To ensure a risk-free customer experience, dealers carry out some upgrading actions on most critical components offer reasonable warranty period at time resale. It is cr...

5.1 INTRODUCTION Up to now, warranty cost models for new products have been analyzed. In view of the present day market, customers are more attracted towards the secondhand products. Thus the present and the succeeding chapters of this thesis focus on analyzing the secondhand products by providing two-dimensional warranty for such products. A two-dimensional warranty policy is characterized by ...

For repairable items sold with free replacement warranty, the actions available to the manufacturer to rectify failures under warranty are to (1) repair the failed item or (2) replace it with a new one. A proper repair-replace strategy can reduce the expected cost of servicing the warranty. In this paper, we study repair-replace strategies for items sold with a two-dimensional free replacement ...